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MIT Sloan Management Review Middle East, in collaboration with Astra Tech, has released a comprehensive white paper titled Leveraging Actionable Gen AI in the Middle East, exploring the transformative opportunities posed by large language models (LLMs), small language models (SLMs), and large action models (LAMs).
The report aims to provide valuable insights into how businesses in the UAE and the broader Middle East are adopting these AI technologies to gain a competitive edge amid the region’s rapid technological evolution.
The survey, which forms the basis of the white paper, highlights the UAE’s leading role in AI adoption, with over half (53.25 per cent) of respondents based in the country.
The findings emphasise the UAE’s strong focus on utilising LLMs and SLMs, particularly in areas such as customer service and product development.
Nearly half (44.74 per cent) of companies in the UAE are deeply integrating AI into these sectors, underscoring the country’s commitment to enhancing customer experiences and personalising product offerings.
“The findings from this whitepaper highlight the immense potential AI holds for transforming industries in the Middle East,” said Hassan Al Noon, SVP of Technology at Astra Tech. “By gathering feedback on best practices, user experiences, and the specific needs of the Middle East market, this whitepaper provides a localised perspective that addresses cultural sensitivities and compliance, ensuring that our AI initiatives are both impactful and sustainable.”
Localising AI solutions
Al Noon further emphasised the importance of localisation in AI solutions, which he said would help maximise the effectiveness and acceptance of these technologies within the region’s unique cultural and regulatory landscape.
Ravi Raman, publisher of MIT Sloan Management Review Middle East, also commented on the report’s significance. “MIT Sloan Management Review is known for its in-depth research and insightful analysis of data. This white paper serves as a comprehensive guide for business leaders, technologists, and policymakers interested in understanding the transformative potential of these advanced technologies,” he said.
The report’s findings show a growing enthusiasm for AI across the Middle East. According to the survey, 27 per cent of businesses are actively exploring AI technologies, while 36 per cent are in the early stages of adoption. Additionally, 13 per cent of companies have already integrated AI deeply into their operations, and another 13 per cent are leveraging AI in innovative ways.
Nine per cent are focused on monetising AI capabilities, reflecting the region’s increasing recognition of AI’s transformative potential.
In particular, the UAE stands out for its AI-driven customer experience initiatives.
The survey reveals that 46 per cent of users in the UAE engage with AI primarily for information retrieval, indicating a strong reliance on smart systems for quick and accurate data.
Another 33 per cent of users utilise AI for customer service and support, while 13 per cent turn to AI for personalised recommendations, highlighting the growing importance of tailored consumer experiences.
UAE retailers leading the way; using AI models to streamline customer experience
Retailers in the Middle East, particularly in the UAE, are leading the way in integrating LLMs/SLMs and LAMs to deliver personalised shopping experiences at scale. By analysing customer purchase history and browsing behaviour, AI models help businesses offer product recommendations that enhance satisfaction and streamline the shopping journey.
The report also addresses security and privacy concerns in the region, particularly in the UAE. Some companies are developing in-house language models trained with locally relevant compliance data.
These models are being used as conversational bots to assist compliance officers in answering regulatory questions, improving efficiency, and ensuring adherence to local rules.
The white paper draws on insights from a wide range of senior executives and decision-makers across industries, with a strong representation from the UAE, further solidifying the country’s leadership in AI adoption in the Middle East.
